One 97 Communications Ltd., Paytm's parent company, witnessed a significant increase in domestic shareholding during Q2 FY 2027. According to the latest shareholding pattern filed with stock exchanges, Indian investors now hold over 56% of the company, marking the third consecutive quarter of majority Indian ownership. This development reinforces Paytm's position as an Indian-Owned and Controlled Company (IOCC), with the trend continuing from previous quarters. As per Business Standard, the company remained majority Indian-owned for the third consecutive quarter, with domestic ownership crossing the 50 per cent mark in the March quarter of FY26.
Domestic institutional ownership experienced a substantial increase, rising to 29.51% in Q2 FY 2027 from 24.9% in the previous quarter, setting a new record high. As reported by Business Standard, domestic institutional investors held 29.51% of the company as of September 30, 2026, compared with 24.9% in the June quarter. This growth reflects heightened engagement from marquee domestic institutions, with block deals during the quarter being met with strong demand from domestic mutual funds, insurers, and pension funds. Prominent domestic mutual funds increased their combined shareholding to 21.17% from 17.9% in Q1 FY 2027, with Kotak Mutual Fund raising its stake to 2.13% from 1.51%. During the quarter end, mutual funds like SBI Mutual Fund (1.47%), Axis Mutual Fund (1.13%), and Sundaram Mutual Fund (1.05%) appeared for the first time among shareholders holding more than 1% stake.
Domestic insurance companies significantly increased their combined stake to 6.22% in Q2 FY2027 from 5.3% in Q1 FY2027. According to Business Standard, Tata AIA Life Insurance held a 2.17% stake while SBI Life Insurance held 1.74% as of September 30. During the quarter end, mutual funds like SBI Mutual Fund (1.47%), Axis Mutual Fund (1.13%), and Sundaram Mutual Fund (1.05%) appeared for the first time among shareholders holding more than 1% stake. Provident and pension funds held 0.88% of the company, compared with 0.87% in the previous quarter.
Foreign direct investment holdings reduced significantly to 18.43% in Q2 FY2027 from 23.8% in the previous quarter. As reported by Business Standard, foreign direct investment (FDI) holdings fell to 18.43% in Q2 FY27 from 23.8% in Q1 FY27. Foreign portfolio investors held a combined 25.09%, comprising 24.36% held by Category I investors and 0.73% by Category II investors. The decline was driven by two large block deals during the July-September quarter, where entities associated with Elevation Capital sold about 2.3% stake for ₹2,038 crore and Resilient Asset Management BV sold about 3% for ₹2,949 crore. The company saw two large block deals in the September quarter, with Resilient Asset Management BV holding 7.19% of Paytm at the end of September.
The increase in domestic ownership marks a continuation of recent trends, with domestic institutional investors increasing their participation in Paytm. According to company information, Paytm's operating revenue grew 28% YoY to ₹2,448 crore in Q1 FY 2027, while PAT rose 79% to ₹220 crore, as it reported its highest-ever quarterly EBITDA of ₹203 crore. The latest shareholding pattern shows that the increase in domestic ownership marks a continuation of the trend seen in recent quarters, with domestic institutional investors increasing their participation in Paytm.
